The Central Board of Direct Taxes (“CBDT”) has notified the time duration for the repatriation of income, accruing as a result of a ‘secondary adjustment’ under Section 92CE, to India. Accordingly, the time limit for repatriation shall be on or before 90 days from;-
i.due date u/s 139(1), where a suo-motto adjustment has been made by the assessee;
ii.date of the order of the AO/appellate authority, where the adjustment is resulting from the aforesaid order, and accepted by the assessee;
iii.due date u/s 139(1), where agreement for advance pricing has been entered by the assessee;
iv.due date u/s 139(1), where option under safe harbour has been exercised by the assessee;
v.due date u/s 139(1), where an agreement under mutual agreement procedure has been under the DTAA;
The imputed cost of interest shall be computed at:
a.at one year marginal cost of lending rate of SBI plus 325 basis points, as on 1st April of the previous year, where the international transaction is denominated in Indian currency; or
b.at 6 months LIBOR plus 300 basis points as on 30th September of the relevant previous year, where the international transaction is denominated in foreign currency.
Further Reading